U.S. stocks slid on Wednesday, led by industrial shares, after Washington’s threat to impose tariffs on an additional $200 billion worth of Chinese goods raised fears of an escalating trade war.
U.S. officials on Tuesday issued a list of thousands of Chinese imports that the Trump administration wants to target with new tariffs. In response, China accused the United States of bullying and warned it would hit back.
The biggest drags on the blue-chip Dow were Boeing, 3M, Caterpillar and Chevron. Their shares were down between 1.2 percent and 2 percent.
Ten of the 11 major S&P 500 sectors were also lower. The S&P industrials sector tumbled 1.21 percent, making it the biggest decliner and drag on the benchmark S&P.
“The market is primarily focused on the potential trade war. However, the fundamentals are just too strong to be shaken by geopolitical events,” said Kevin Miller, chief investment officer of asset management company E-Valuator Funds.